Alistair Buchanan, chief executive of Ofgem, said: "Ofgem is determined to press forward with proposals to deliver for consumers the most far-reaching shake-up of the retail energy market since competition was introduced."

All consumers should be given their supplier's cheapest tariff on their bill as well as a tariff comparison rate to compare tariffs 'like for like' across the market, the regulator said.

Energy users also should be given "personalised information" to help find their best deal and should default to cheapest tariffs at the end of fixed-term contracts.

Ian Marlee, managing director of Markets at Ofgem, said: "Given the evidence about how the market has gone in the last few years, we want to give customers an effective choice rather than the confusing array of tariffs which makes it difficult to make that choice."

Ofgem wants to explore ways to ensure switching it easier and the power to fine suppliers if they fall short of the new standards of conduct.

Angela Knight, chief executive of industry body Energy UK, described Ofgem's proposals as "tough", and called for an "open and honest debate" about achieving a balance between "generating cleaner energy and keeping bills as low as possible".

Analysts at Liberium Capital highlighted that companies has already begun to simplify their tariffs. "Ofgem’s proposals will continue that process. We now expect the start of the introduction of these reforms from next summer."

However, they added that the move towards renewable energy meant that it was "inevitable" that bills would rise, with much of the investment costs "shouldered by the consumer".

Arriving yesterday in Brussels for an EU summit, Mr Cameron he said he wanted to be on the side of hard-working families who often struggle to pay energy bills.

"We’re going to use the forthcoming legislation, the energy bill, coming up this year so that we make sure, we ensure that customers get the lowest tariffs. That’s what we’re going to do," he added.